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1.

Which special goods transactions are recorded in the Journal proper ?

Answer»

These special goods transactions are recorded in the Journal proper :

  1. Goods given in charity.
  2. Goods given as samples,
  3. Goods taken for personal use,
  4. Goods given for purchase of any asset and
  5. Loss of goods due to fire, accident, theft, etc.
Discussion
2.

Which types of transactions are recorded in the journal proper?

Answer»

These types of transactions are recorded in the journal proper :

  1. Opening entries,
  2. Transactions which are not included in other subsidiary books,
  3. Transactions of inter-account transfer,
  4. Closing entries,
  5. Adjustment entries and
  6. Rectification entries.
Discussion
3.

Which internal transactions are recorded s in the journal proper ?

Answer»

Depreciation on fixed assets, loss due to natural calamity, written of goodwill, shortage of goods due to any reasons, etc. are internal transactions. They are all recorded in the journal proper.
Discussion
4.

Which types of transactions are recorded in the journal proper?(a) Credit purchase of goods(b) Credit sales of goods(c) Credit purchase-sales of an asset(d) Goods returns

Answer»

Correct option is (c) Credit purchase-sales of an asset
Discussion
5.

Where rectification entries are recorded ?(a) In cash book(b) In bills receivable book(c) In journal proper(d) In trial balance

Answer»

Correct option is (c) In journal proper
Discussion
6.

What is called Journal proper ?

Answer»

The transactions which are not recorded in any other subsidiary books are recorded in one special subsidiary book which is known as Journal proper.
Discussion
7.

What are rectification of errors?

Answer»

Entries passed to rectify the errors committed while recording economic transactions are called as rectification of errors.
Discussion
8.

Why are opening entries passed?

Answer»

The opening entries are passed in the journal proper at the beginning of the accounting year to record the balances of assets and liabilities owned and possessed by the business enterprise.
Discussion
9.

Why adjustment entry for closing stock of goods is to be passed at the end of the year?

Answer»

Adjustment entry for closing stock of goods is to be passed at the end of the accounting year because of to know the correct gross profit or gross loss amount.
Discussion
10.

Why adjustment entries are to be passed at the end of the year?

Answer»

At the end of every accounting year, entries are to be passed for certain adjustment so that the true performance and true financial position of the business can be known.
Discussion
11.

Why is it necessary to write adjustment entry at the end of the year for closing stock?(a) To rectify the error(b) To find true profit or loss(c) To transfer the account(d) To close the account

Answer»

Correct option is (b) To find true profit or loss
Discussion
12.

Wages of ₹ 1000 paid for the installation of a new machine is debited to wages account. Which account will be affected while rectifying this error?(a) Wages A/c and Machine A/c(b) Only Machine A/c(c) Only Wages A/c(d) Cash A/c

Answer»

Correct option is (a) Wages A/c and Machine A/c
Discussion